Who Should Insure My Jewellery

Check the limits on the policy

Most policies have limits for jewellery items that are not listed, usually a figure between $1000 and $5000 for each, but some are as low as $500. There is also usually a total limit for each claim of between $15000 and $50,000 irrespective of the number of unlisted items in the claim.

Check the type of cover - Replacement or Indemnity

There are two ways your jewellery may be covered by your policy, which is why many valuations list two insurance values.

One is the Replacement New Value which is the amount necessary for you to purchase a brand new item of equivalent quality.

The other is the Indemnity Value – more recently referred to by insurance companies as “market value”, “present day value” and “current value” – this is the amount the actual item is likely to retail for as is, ie it's second-hand retail market value.

What happens when I lose a jewellery item and file a claim?

Usually the Insurance Company will require some proof of ownership, and evidence of the value of the item. Once the claim is accepted, the current value or values will be re-calculated from the item description in your valuation. If your cover is for Replacement, you may be issued with a voucher to purchase a new item, or jewellers may be invited to quote to replace. If your cover is for Indemnity the insurance company usually has the option of replacing as above, or paying you the Indemnity value in cash.

Check how the policy covers jewellery

Read the fine print of the insurance policy or ask your insurance adviser. Some policies that offer replacement on your contents exclude items such as cameras, sports equipment, and jewellery – paying only the second-hand (Indemnity) value. Most companies offer the option of upgrading to a full replacement policy for jewellery.

How can I get the best policy at the best price?

1. Use a good insurance broker. A broker can go through your requirements with you and recommend the best options for policies from the likes of VERO, Ando, and NZI.

2. Have a look at Quashed. This is a new website where you can manage your insurance policies, and research new ones for free. Quashed enables you to research the direct insurers that brokers do not deal with - e.g. State, AMI, Tower, and AA